Gemini (GEMI) shares surged as much as 30% in after-hours trading on Thursday after the crypto exchange disclosed a 42% year-over-year increase in first-quarter revenue and revealed its first operating figures for its prediction market business. The company also announced a $100 million investment from Winklevoss Capital, paid entirely in Bitcoin.
Total revenue hit $50.3 million, up from $35.3 million a year earlier, fueled by strong performance in services, OTC trading, and the Gemini Credit Card segment. For the first time, Gemini shared details on its prediction market product, which launched in December — it generated $400,000 in revenue, with over 20,000 users trading more than 100 million contracts. While still a fraction of volumes seen at pure-play rivals like Polymarket and Kalshi (which see $300,000–$500,000 in daily activity), Gemini noted that April volumes jumped an additional 78% from the prior month.
CEO Tyler Winklevoss highlighted the strategic shift: “Gemini has achieved several major product and regulatory milestones that position us well to evolve from a crypto company into a markets company.” The transformation is backed by a newly granted Derivatives Clearing Organization (DCO) license from the Commodity Futures Trading Commission, enabling internal management of settlement, collateral, and risk for derivatives. Gemini said the license moves it closer to offering a “full-stack, end-to-end marketplace” for predictions, futures, options, and perpetual contracts.
Despite the revenue growth, Gemini recorded a net loss of $109 million for the quarter. Exchange revenue fell 27% to $17.2 million as trading volume plummeted to $6.3 billion from $13.5 billion a year ago, reflecting a broader industry slowdown. However, services and interest revenue — including credit cards, staking, and custody — soared more than 120% to $24.5 million, now accounting for almost half of total revenue. Credit card revenue alone leaped 300% to $14.7 million.
The $100 million Bitcoin investment from founders Tyler and Cameron Winklevoss through Winklevoss Capital Fund serves as a non-dilutive capital injection meant to strengthen liquidity and support Gemini’s diversification away from spot trading. By using Bitcoin instead of fiat, the firm underscores its conviction in digital assets and avoids traditional banking channels, a move that may inspire other crypto-native firms.
